Customs Act, 1962 › Chapter V — Levy of, and Exemption from, Customs Duties

Section 27A. Interest of delay refunds

Customs Act, 1962

Bare Act

Interest on delayed refunds. — If any duty ordered to be refunded under sub-section (2) of section 27 to an applicant is not refunded within three months from the date of receipt of application under sub-section (1) of that section, there shall be paid to that applicant interest at such rate, not below five percent. and not exceeding thirty percent per annum as is for the time being fixed by the Central Government by Notification in the Official Gazette, on such duty from the date immediately after the expiry of three months from the date of receipt of such application till the date of refund of such duty:

Provided that where any duty, ordered to be refunded under sub-section (2) of section 27 in respect of an application under sub-section (1) of that section made before the date on which the Finance Bill, 1995 receives the assent of the President, is not refunded within three months from such date, there shall be paid to the applicant interest under this section from the date immediately after three months from such date, till the date of refund of such duty.

Explanation. — Where any order of refund is made by the Commissioner (Appeals), Appellate Tribunal, National Tax Tribunal or any court against an order of the Assistant Commissioner of Customs or Deputy Commissioner of Customs under sub-section (2) of section 27, the order passed by the Commissioner (Appeals), Appellate Tribunal, National Tax Tribunal or as the case may be, by the court shall be deemed to be an order passed under that sub-section for the purposes of this section.

Judgments on Section 27A

  • Jaina Marketing And Associates vs Union Of India And Ors — Delhi High Court, 30 Mar 2026. Where duty that was never payable is refunded after prolonged departmental delay in re-assessment and refund, interest at the statutory rate is payable from the date of the importer's first re-assessment application to…
  • Yash Pakka Limited vs Lucknow Prev — CESTAT, 14 Feb 2024. Under Section 149 of the Customs Act, 1962, a shipping bill may be amended or converted even after export if supported by documentary evidence in existence at the time of export, and a circular's self-imposed time limit…
  • Union Of India vs M/S. B.T. Patil And Sons Belgaum… — Supreme Court of India, 5 Feb 2024. Where duty drawback on a deemed export is not refunded within three months of the claim, the claimant is statutorily entitled to interest under Section 75A(1) of the Customs Act at the rate fixed under Section 27A (15%…
  • Vvd And Sons Pct Ltd vs Commissioner Of Cce & Gst-Commissioner… — CESTAT, 8 Sep 2026. Where duty is paid under protest and a refund application is filed contemporaneously with such payment, interest runs from the date immediately following three months from that application, because a dispute purely over…
  • Shah Nanji Nagsi Exports Pvt. Ltd And Anr Thro. Its Director Shri Ashwin Shah vs Assistant Commissioner Of Customs — Bombay High Court, 16 Apr 2026. A refund-sanctioning order that grants the principal refund but is silent and gives no reasons on the claim for accrued interest is passed without application of mind and is unsustainable, entitling the claimant to a…
  • Commissioner Of Customs vs M/S. Hadeed Steels Pvt.Ltd — Kerala High Court, 8 Nov 2024. Where imported goods are never cleared for home consumption but are re-exported in their entirety, the taxable event for the levy of import duty does not materialise and the Customs Department has no justification to…
  • Ms Yash Pakka Limited vs C.C. Lucknow — CESTAT, 23 Aug 2023. A request under Section 149 of the Customs Act, 1962 for conversion of free shipping bills into drawback shipping bills cannot be rejected without affording the exporter an opportunity of hearing — an order passed…
  • The Daily Thanthi vs Commissioner Of Customs (Appeals) — Madras High Court, 25 Jan 2021. Amounts deposited 'under protest' at the appellate stage, in the nature of a pre-deposit under Section 131 of the Customs Act, 1962, must be refunded without invoking the unjust enrichment bar or limitation of Section…
  • M/S. Hadeed Steels Pvt. Limited vs The Commissioner Of Customs — CESTAT, 19 Oct 2017. Section 26A of the Customs Act, 1962 bars refund only where goods have been cleared for home consumption and are later identified and exported as illegally imported goods; duty paid on goods never cleared for home…